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Krugman says the European Union countries were not ready for the euro and the current crisis shows this. Spain with its peseta could have regained its competitiveness with a 20% devaluation, after years of inflation as money flowed into Spain from other countries including Germany and fueled the housing boom. Or Spain would have received stimulus funds from the central government, if it was an American state like Florida. Instead Spain now has to work through this crisis with high unemployment and painful deflation. Greece faces severe austerity measures and is more to blame for its mess, because of faulty accounting to cover up its problems.

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The Bank for International Settlements, BIS, considers companies that have interest payments exceeding the earnings before interest and taxes as zombie companies. This report in WSJ cites BIS central bank data showing 10% of European companies, including companies in Italy, Spain, and France are zombie companies. Stefanel, clothing maker, is one of these companies in Italy. This is up from 5.5% in 2007, showing how the financial crisis of 2008 and the aftermath have affected European business.

OECD estimates in Jan. 2017 confirm this showing the figures have tripled since 2007 for Italy and Spain. This misallocation of capital is as much as 20% in Italy.

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American men took the biggest hit for life expectancy in an Oxford University study, with life expectancy dropping by 2.2 years in 2020. American women life expectancy dropped by 2.65 years. Lithuanian men had a decline of 1.7 years. This is the largest decline going back to the days of the Great Depression in the 1930's

Elsewhere in Europe, life expectancy declined in many countries for the first time since the Second World War. This happened in Spain, Italy, England, Wales and Belgium. Women in 8 countries and men in 11 countries had drops in life expectancy over more than 1 year.

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Reports from Europe that a V shaped recovery is happening in the economy. Andy Haldane the chief economist of the Bank of England says roughly half of the 25% lost output in the economy in the lockdown in April and May has been gained back in UK. This is good news for Europe after the bad hit it took from the pandemic since March. The reopening of the economy in Germany, France, Italy, Spain and Britain is taking place with greater reassurance as the curve is flattening out at low levels of cases in July and people are generally following rules for prevention.

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The cooler mountain regions of Italy that are away from the tourist crowded destinations of Florence, Barcelona and the rest of Spain, Lisbon, Portugal. They are the Dolomite mountain region of Italy, the Alpine region of Slovenia, the Black Forest Germany, Vienna, Austria, English wine country, Bergen, Norway. The English wine country is in the southeast, Surrey, Kent, Sussex, and cooler this time of the year in summer than parts of southern Europe. The Black Forest region has cities like Freiburg and Karlsruhe in the southwest of Germany. Nearby is the Rhine region with Koblenz. All easily accessible from Frankfurt.

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Krugman says voters in France, Greece, the UK and other countries are protesting against austerity measures imposed in the EU countries. The policies were based on the assumption made by the Chrisitian Democrats in Germany that the German model if applied in other countries would generate the kind of recovery Germany made in the last decade from the high unemployment under chancellor Gerhard Schroeder. German wage restraint agreement between unions, industry and government made this possible under the Hartz reforms, and France is already embarking on wage restraint, with the two major parties, unions and industry backing the plan. But for this to work France and other countries such as Spain and Italy have to be able to export to Germany or other countries. German workers are suffering from stagnant wages for many years, stemming from concessions made to reduce unemployment. Allowing wages to rise in Germany when there is a shortage of workers in industry, would benefit workers in Germany and help France and other EU countries increase exports. German industry is failing to make this normal adjustment in markets by insisting on smaller concessions, even though there is support within the government for higher wages. German growth was possible because of demand outside for its exporters. The "austerity measures" Germany supports would depress demand inside the domestic economies of France, Spain, Italy and other EU countries, and without the wage and inflation adjustments with Germany leave demand weak outside. Without needed demand output falls, unemployment rises and tax revenues decline, leaving deficits worse than before, and a dangerous downward spiral. Better management of finances as Germany has insisted has ceased to become the issue, as both Hollande in France and Rajoy in Spain, and Monti in Italy, are keen on getting control of finances, especially regional spending in Spain....

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A detailed account of the expansion of Banco Santander under Emilio Botin, using his shrewd financial abilities and extraordinary stamina. Botin expanded the bank with acquisitions of Banesto in Spain, Abbey National in UK, and acquisitions in Brazil and Mexico. This reduced its profit exposure in Spain to 15%, reducing its risk in the 2011-2013 banking crisis in Spain. Botin's family has run the bank for three generations, with the bank now headed by Patrcia Botin, after Emilio Botin died of a heart attack in 2014. Sheila Bair, former head of the U.S. FDIC, says the bank is run efficiently, and Botin was careful to manage risks prudently in the global financial crisis of 2008. Banco Santander benefitted from the years of rapid growth in Spain following Spain's entry into the European Union in 1986, the year Emile Botin took over as chairman. He comes from Santander in northern Spain, and studied law and economics at Spanish universities. With the passing away of Adolfo Suarez, and the abdication of Juan Carlos, the passing away of Emile Botin in the same year, three of the men who helped create modern Spain have now faded away....

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ECB president, Mario Draghi, is interviewed by Wall Street Journal reporters Blackstone, Karnitschnig, and Thomson, at his offices in Frankfurt. The reporters press questions such as- are austerity measures going to work in Greece, what happens with Portugal, what is "good" and "bad" austerity, why aren't eurobonds the answer. Draghi sidesteps the Greece question by saying it will depend on implementation of the commitments in fiscal policy and structural change. He takes the discussion to the general situation in southern Europe, in Italy and Spain, with the high youth unemployment and inflexible labor markets, making the point that there is no alternative to fiscal consolidation considering the excessive debt to GDP ratios of Italy, Spain and other countries. Good fiscal consolidation is where the taxes are reduced and government expenditure is on infrastructure and capital investments. Bad fiscal consolidation merely raises taxes, leaves current expenditures as is, and reduces capital investments. From his experience with the situation in Italy- and a similiar situation exists in Spain- Draghi points to the ways in which inflexible labor markets for the protected part of the population leads to temporary work contracts and few job opportunities for young people. The unemployment rate in Spain for young people exceeds 50%. Draghi's view is that fiscal consolidation is contractionary in the short term, but leads to growth in the longer term as structural changes are made and the confidence channel operates. It is also necessary to be put in place first, so that there is time to put the structural changes in place. He sees the program in Portugal on track. At the same time Draghi is aware of the drying up of credit in Spain, Italy and other countries even after the Long Term Financing Operation, and will respond as the situation changes. On the point of eurobonds, Draghi says it cannot be accepted that you spend and I pay, countries spend as they see fit and then they issue bonds jointly. For there to be trust its essential that each country stand on its own, and this is also a condition for setting up a durable fiscal union. This aspect of his views are consistent with the views of German chancellor Merkel and the northern European countries, Germany, Netherlands, Finland. Draghi is not new to this job after being president of the ECB for 4 months. He was on the Governing Council of the ECB for 6 years and has a good grasp of decisions made in the past. When asked if there is more that he could do for growth, Draghi's response is that the ECB will do the most it can do for price stability in the medium term and at the same time within the terms of the Treaty to promote financial stability. ...

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Consumers are taking on new loans for cars and purchases such as refrigerators, but at the same time businesses and consumers are paying off debt at a faster rate. The sharp decline in the Euribor rate in 2015 is good news for Spanish consumers and business as most loans are tied to the Euribor rate. Yet memories of the severe downturn in the Spanish economy are leading to consumers reducing debt with reluctance to take on new loans. The result is that even though Spain's economy is expected to show 3% growth in GDP in 2015, the loan levels at Spanish banks are expected to remain flat in 2015 over 2014. The IMF says GDP will not reach precrisis levels till 2017, reflecting how deep this downturn has been in Spain. IMF forecasts show that debt held by Spain's businesses and households will be double economic output till about 2020.

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In May 2023 Germany's Scholz overruled Habeck to let sale of 24.9% of Hamburg port to COSCO go through. Here is how over 2000-2016 China build its world class network of containerized shipping ports while the second Bush added the war in Afghanistan to the wars in Iraq started by Reagan/Bush. Without defense costs China built this world ports network. Piraeus in Greece, south of Athens, a port concession acquired in 2004 Antwerp in Belgium (Austrian Netherlands), a minority stake in a container port acquired in 2008. In 2013 with sale of Terminal Link ports in a Cosco 49% stake deal by CMA of France CMA holding 51%, China has stakes in Zeerbrugge and Antwerp, Busan South Korea, and Le Havre, Montoir and Fos in France, Xiamen in China, Miami and Houston in US. Rotterdam, Netherlands- Cosco acquired in 2016 a 35% stake in Euromax Terminal in Rotterdam from Hong Kong's Hutchison's Holdings for $125 million. Valencia and Bilbao majority  51% stake for $270 million, when JP Morgan paid as much as $950 million to ACS of Spain for these ports after the 2009 crisis led to Spanish divestments. Today measured in TEU shipping containers China sends goods to Europe 10 times what it takes in through Spanish ports. ...

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Spain's banks have government debt holdings as a percentage of bank assets of 6.8% compared to 13.1% for Italy's banks. This is based on data available from the IMF. But Italian banks are far better capitalized than Spanish banks. Bank shares of Italy and Spain hit post Lehman lows in July 2011, but Italian bank shares are likely to recover faster than Spanish bank shares. Italian banks raised 8 billion euros of capital in 2011 and most banks have an average core Tier 1 ratio of over 8%. By contrast Spain's bank sector is perceived by markets as undercapitalized and the IPO's of savings banks Bankia and Banca Civica will be affected by the unsettled markets.

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Spain's Budget minister, Cristobal Montero, said the government would have a new credit line and provide an early infusion of $10 billion to aid financially troubled regions. Many of the regions are in such financial straits that they are unable to pay suppliers, and this is putting many small businesses in serious difficulties. Spain's prime minister Rajoy says the Spanish government needs to be concerned about what is happening in the regions, and that he would help regions as long as they meet their budget goals. Spain adopted a decentralized model after the years of the Franco dictatorship, and regions handle education, health care and social services, culture and providing services. With the economic crisis following years of free spending by the regions, the extent of this autonomy and the lack of budget controls is being called into question. Officials from regions such as Aragon, Valencia and Murcia have called on the federal government to play a bigger role.

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Larsen says the EFSF should get the funding it needs to recapitalize troubled European banks, as the first step to solving the eurozone financial crisis. Banks in Spain and Italy that failed stress tests would get funds to build up their capital. Creditor haircuts should be part of the effort to reduce the debt burden of troubled eurozone countries.

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Northcroft in The Times says this about Gareth Southgage that Southgage devoted his life to the national team and has an envious record with two finals, one semifinal and one quarterfinal in world soccer. It is the best record of an England coach in 66 years. Southgate says that this Euro 2024 was the best coaching he has ever done. In the game with the Netherlands taking out Foden and Kane in the last minutes of the game and bringing in Palmer and Watkins led to Watkins taking England to the Finals against Spain. In the last minutes of the game repeated headers and counter headers almost took the game against Spain to extra time. English fans are notoriously fickle and Gareth Southgate deserves to feel great about what he has accomplished winning the respect of the Spanish team which clearly were desperate to keep the ball out of their goal to the end, winning the applause of hundreds of millions fans all over the world for games well played, and the thanks of England for doing the hard work at the FA level youth clubs at under 16 and under 19 to give English soccer a new generation of players. This really is what soccer is about, not the glitz and glamour of television and record level contracts of players and team owners, or unruly fans and their criticism, that are eclipsing the best aspects of the game that brings so much to people all over the world. Because no other game reaches so many people in every part of the world. ...

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Spain's deficit as a percentage of GDP is expected to be 6.0 percent for 2011. The target set by the Rajoy government is for the deficit to be lowered to 4.4% in 2012. Newly elected prime minister, Mariano Rajoy, told parliament that the "outlook could not be darker," with the economy expected to contract in the fourth quarter and in 2012. Rajoy, plans to introduce emergency budget measures on Dec. 30, 2011, labor market changes in the first quarter of 2012, and a banking sector cleanup in the first half of 2012. Savings of 16.5 billion euros will be needed to meet the 4.4% of GDP deficit target for 2012. Rajoy is studying the situation before announcing budget cuts. He affirmed that pensions which were frozen in 2011, will be raised in 2012 in line with inflation. He enjoys the support of France's president Sarkozy and German chancellor Merkel, as all three leaders are heads of conservative parties in Europe, and has excellent rapport with them going back to the period when Rajoy led the opposition party in Spain....

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Meltzer says the northern European countries France, Germany, Netherlands, and others should form a new currency union, and leave the euro currency to Portugal, Ireland, Italy, Spain, and Greece (the PIIGS countries). This way Greece can devalue its currency to bridge the gap of 20% between wages in Greece and the productivity of workers in Greece. The new currency union would follow fiscally binding rules. After the adjustments in currency were made by Greece, Portugal, Italy and Spain, these countries could be admitted to the new currency union of the northern countries. This would be conditional on acceptance of financial discipline and enforceable sanctions by these countries. Meltzer says clever agreements designed to protect the bankers are not the solution, as they only shift the responsibility and the burden for wasteful and reckless behaviour to taxpayers. Bondholders would take losses in a devaluation, and banks that are at risk should be either allowed to fail or given loans on strict repayment conditions. ...

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European Union leaders including European Council president, Herman Van Rompuy, European Commission president, Jose Manuel Barroso, ECB president Mario Draghi, and Eurogroup finance ministers head, Jean-Claude Juncker, draw up a 10 year road map for "a genuine economic and monetary union." The prime ministers of Italy, France and Spain push jointly for deposit insurance to cover European bank deposits, Europe wide banking supervision, and bailout funds to directly purchase sovereign debt of Italy and Spain without conditions. This takes place June 22-27, 2012, with the EU leaders increasing pressure on Germany for the first time in concerted fashion. Ms. Merkel and her coalition partners the Free Democrats see this as an effort at mutualizing debt. Merkel says Europe will not have total sharing of debt "as long as I live," in her talks with Free Democrats.

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WSJ was first to point out the dangers of holiday hotspots in Spain, Greece and Croatia in spreading the coronavirus in Europe. One story in the WSJ showed how 21 million tourists visiting Croatia in the summer were not following the basic social distancing and mask guidelines. These tourists returning to Germany, Austria and other countries were spreading the virus after becoming infected in bars and restaurants, shops in Croatia which had not followed the basic guidelines that had been followed earlier in Croatia in April. Over the summer after months of lockdown people simply used fatigue with restrictions as a reason for going the other way and ignoring them.

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Carlos Alcaraz finishes a five set 4 hours at the US Open semifinals, after a quarter finals game that lasted 5 hours all the way to the early hours of the morning at 5 am. The youngster from Spain meets another new face at the US Open Casper Ruud of Norway. The old game had disappeared with very few net points and fewer lob shots. Ruud and Alcaraz are taking the game back to how it was played by the likes of Laver and Nastase in the 1960's and 1970's when a whole mix of shots and agility at the net was always part of the game.

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Deocuments from the weekly cabinet meeting show the new budget in France will increase revenues from household income taxes by 23%, and business taxes by 30%. The top marginal income tax rate goes up to 45% from 41%. Limiting a deduction for financial charges for company's taxable income brings in $4 billion in 2013, according to the finance ministry. The goal is to cut the budget deficit to 3% of GDP in 2013 from 4.5% in 2012. The finance ministry has assumed higher borrowing rates for future years- 2.9% on 10 year debt for 2013, up to 3.65% in 2015, and is not relying on the low rate of 2.18% on 10 year government bonds as reported by Trade Web Sept 28, 2012. The overall tax burden will be 46.3% in 2013, and 46.7% in 2015. French debt is at 91% of GDP for the 2nd quarter 2012, expected to be 91.3% in 2013 and falling to 82.9% in 2015. Prime minister Ayrault emphasized- "If we don't put a stop to this, taxpayer money will keep paying for debt reimbursement." Swift anticipatory action and unified government-business-labor posture under a favorable borrowing environment characterizes the approach for Britain and France in 2011-2012, compared to the situation in Spain where government action has been slow, not tough enough in cleaning up the banks, fallen behind in anticipating events and the government-business-labor unified posture has cracked under the strain. As a result under an unfavorable borrowing environment money raised from austerity type tax increases now goes to paying for debt reimbursement in Spain, leading to a situation in which debt and deficit reduction targets just get harder to achieve. A looming drop in credit ratings to junk status for Spain only makes the situation harder to overcome. ...

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Spain lifts its state of emergency and reopens it borders after 13 weeks o coronavirus with 28,000 dead and 245,000 cases. Prime minister Pedro Sanchez said "we can all be a wall against the virus or the means of its transmission. It depends on each and every one of us." He said the government was building up its strategic reserve of essential products to cope with any potential second wave. Masks will continue to be mandatory in public spaces when physical distancing of 1.5 metres is not possible.

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Behaviours of young people going to beaches and bars, ignoring social distancing guidelines and not wearing masks is leading to a rise in the number of daily cases in Europe. This includes an illegal rave in a Berlin park. The incidence of coronavirus is now 19.6 per 100,000 people for persons ages 20 to 29 compared to 9.7 per 100,000 for the French population as a whole. Germany has recorded 900 new cases daily, France 1000, and Spain 2000 as a result of these youth behaviours during the last week.

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Spain and Italy, the New York region, delayed their response, just as Japan and Sweden are doing today, resulting in the severity of the pandemic in these countries and regions. This pandemic is showing the earlier you act to lockdown, quarantine, use contact tracing and isolation of clusters method, the better it is with fewer people infected and fewer deaths. This is the single most important lesson of this crisis, which health experts worldwide, including Dr Birx, head of the White House Response, and Dr. Fauci, never get tired of repeating.